Policy Costs Go Up

 

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Insurance Premiums Go Up

09 Oct 2006

An AA survey which regularly test the price of insurance premiums has found that prices have gone up for the second survey in a row. It is thought that the increased cost to insurers of personal injury claims and accidental damage has forced the price increases. Prices had been kept artificially low by the arrival in the market of more and more competition and as insurers battled to gain market share.

The average policy now costs £772.13, just below the all time high of £777.57 which the index hit in December 2003. It has risen 1.41% for fully comprehensive insurance and risen 4.62% for 3rd party, fire and theft insurance in the last three months alone.

One piece of good news for the consumer is that the AA Index also shows that the cost of home insurance fell by 0.33% and the average premium for contents insurance fell by 2.61% on average.